International Research Journal of Applied and Basic Sciences

© 2013 Available online at www.irjabs.com

ISSN 2251-838X / Vol, 4 (7): 1894-1900
Science Explorer Publications

Examining the effect of Brand dimension

(trademark) on home appliances consumers'
behavior
Case study: LG brand in Rasht city
Shahram Jenabi1, Seyed Yahya Seyed Danesh2, Minoo Yousefi3
1. Assistant professor in departmant of, management –organisational behavior, Payam –e-Nour university,PO
Box:19395-3697,Tehran-Iran
2.
Assistant professor in department of industrial management, Payam-e-Nour University,PO Box: 19395 -3697
Tehran –Iran ,
3.
MA graduate of MBA, Payam-e-Noor University, Tehran.

Corresponding author email: seyed_danesh@yahoo.com

ABSTRACT: One of the most important and valuable assets of a company is its trademark. The
more valuable is a trademark for consumers more profits the company achieves. The present
paper aims to identify the effect of brand dimension on home appliances consumers' behavior. To
achieve this goal the relationship between reputation, identity, image, meaning, age and brand
advertisement with consumer behavior was tested based on the conceptual research model.
Required data were collected using questionnaire, randomly, from the population of LG brand
consumers in agents of this company and Rasht city. Since the population is wide and infinite,
simple random sampling and sample size formula were used to estimate the sample size (it was
calculated to be 202 individuals). Pearson correlation test, using SPSS software, and multiple
regression analysis were used to analyze collected data. Results showed that aspects of brand's
dimensions have a positive effect on consumers' behavior and there is significant relationship
between these two components. Thus, it is suggested to LG brand to use its competitive
advantage, particularly its reputation, identity and brand management, and other aspects of brand
(mentioned in this research) to lead its consumers' behavior to a positive direction.
Keywords: brand, market, selection, consumer's behavior

INTRODUCTION

We are all consumers. This means that we use or consume food, cloth, residence, education, services,
ideas, etc. based on a certain discipline. Decisions we make on consumption, demand for raw material,
transport, technical services or on resource allocation and establishment result in success of some industries
and failure of others. Therefore, consumer's behavior is a main factor in prosperity or stagnancy of commercial
activities. This is of great importance for both state and private organizations (Fard Sabouri, 2011). Identifying
consumers' behavior leads to their personal value; that is, knowing his own consuming behavior an individual
netter recognized his needs and interests and will be pleased by the consumption act. Besides, brand is known
as the main core and the closest variable in consumer's decision-making while choosing an item (Nasiripour et
al, 2010). Like capital, technology and raw material, brand also plays a role in creating added value for an
organization. Both the consumer and the organization benefit from advantages of the brand. When a
consumers is already experienced with a certain brand he is more convenient with it and is highly tended to use
it again (Ganjinia & Akhavan Foumani, 2011). Brand gives good information on an item's quality, performance,
and its other aspects and imposes less risk on the customer. Brand gives meaning to its owner and is
considered as his wealth (Zeinali, 2011). It is the most valuable asset of an agency. To respect concepts such
as brand, its management and special value results in achieving a proper house in consumers' mind.
Nowadays, many companies try to directly affect consumers' behaviors and beliefs to influence their feeling and
interest toward their own brand (Amirshahi et al, 2011). If it happens, more interest of consumers to a certain
brand can have a positive effect on their beliefs and, per se, lead to tendency to reuse and formation of
purchase behavior.
Intl. Res. J. Appl. Basic. Sci. Vol., 4 (7), 1894-1900, 2013

Problem Definition
Correct decisions and developing effective sales and marketing strategies and tactics depend on
identification and understanding of consumers and purchasers by organizations. Today, marketing researchers
are permanently trying to identify consumers' behaviors and adopt proper strategies for better and more
effective sales and increasing the company's share of market. Manufacturers must be aware of conceptual,
intellectual and behavioral layers of potential customers in order to supply demands, maintain and expand their
share of market, and to manufacture, distribute and promote their products based on their decision-making
mechanisms (Azizi & Namamian, 2009). Products innovators and designers can be aware of dimensions of
customers' expectations and satisfaction and develop models to facilitate benefiting from them (Aaker, 2006). In
economy's classic literature labor, capital and land are considered as three main elements of production and
main sources of wealth. But this pattern can not explain how an item with the same efficiency, quality and
beauty is sold three times more expensive than another item. Modern approaches of marketing explain this
phenomenon by the identity brand brings to the customer (Erike, 2008). In many markets brand creates a
certain identity for a product and binds it to a particular group of the society. Moreover, premier brand
unconsciously gives the idea of better quality to the customer. A customer buying a brand's products believes
he is achieving a valuable item for the money he pays. The fact is that the brand, like capital, technology and
raw material, plays a significant role in developing added value for an organization. Brand is one the most
important favorites of consumers in the area of business and commerce (Pike, 2009). Thus, the present paper
investigates why people are tended toward certain brands and purchase these products more frequent than
others. The paper also studies strategies helping a company enhance its brand's reliability and reputation to sell
more products.

Research Necessity
Consumer's behavior is a challenging and debating issue individuals and things they purchase, why
and how they purchase, market and marketing mixed factors. Consumer's behavior is a delicate issue since
individuals' behavior is not always clear and obvious an their performance as a consumer, often, could not be
anticipated or even explained (Jazni et al, 2009). Marketing includes all business activities from its final
viewpoint (customer's perspective). Success of a commercial company is not determined by the manufacturer,
but by the customer (Soleimani & Modabbernia, 2009). Study of consumer's behavior is the result of a
philosophical evolution in marketing from being production and product-tended toward being sales and
marketing-tended. Other factors also contributed to expansion of consumer's behavior study including: high rate
of introducing new products, shorter lifetime of products, increase in movements of private groups and public
policy makers supporting consumers, paying special attention to the environment and the growth of service
marketing (Zeinali, 2011).
Having a correct understanding of consumers and the process of consumption in such a situation has
multiple advantages which include: helping managers in decision-making, providing a cognitive basis through
analyzing consumers' behavior, helping legislators and regulatory authorities in establishing rules relating item
and service sales and purchase and, finally, helping consumers in making the best decisions.
Recently, research on brands and their particular value for marketing activities and theories has been
emphasized more than past. Brands can create such value and power in the market which is highly superior to
what is developed by a product's substantial features. A powerful brand can possess more brand special value.
A powerful brand with positive special value has advantages such as higher profitability, opportunities to
generalize the brand, more powerful communication effectiveness, and higher purchase priority by consumers.
Hence, developing a brand and maintaining and improving its value is one of the most important and powerful
distinguishing methods for economic agencies and organizations (Seyedein, 2011).
Based on these interpretations, the relationship between brand and its values with consumer's behavior
must be scientifically investigates.

Research Questions
1- What effect does brand have on consumers' selection behavior?
2- Does the writing and form of a brand influence consumers' behavior?
3- Respecting research findings, what effect does brand have on behavior of LG home appliances
consumers in Rasht?

Research Goal
The present research aims to identify and examine the effect of brand on LG home appliances
consumers' selection behavior in Rasht city. To achieve this goal the effect of six aspects of brand on
consumers' behavior are studied. These aspects include: reputation, identity, image, meaning, age, and brand's
advertisement.

1895
Intl. Res. J. Appl. Basic. Sci. Vol., 4 (7), 1894-1900, 2013

Review of Literature
Consumer's behavior: Is a set of activities in which individuals are involved in actual or potential use of
various items in a market including products, services, ideas and shopping center environments. This definition
is proposed by Berkman and Gilson in 1981.
If a consumer is to name some of his interests about an item one of them is, undoubtedly, the brand of
that item. The brand gives identity to an item, distinguishes it from similar items and services and creates the
feeling of interest and difference in consumers (Bartikowski, 2010).
Brand: One of the best definitions of brand was presented by Gurdnere and Leovie in 1995. They
describe brand as "a complicated symbol involving a wide range of ideas and features". The brand is expressed
not only by its tone (based on the lexical meaning), but also by every element which is somehow combined with
it in a certain period of time and is known as a social identity in the society (Sanaye'ei & Ketabi, 2008).
Special value of a brand: International Institute of Marketing (1989) defines special value of brand as:
"A value which is added by a name and is brought by more profit of market share. Costumers and
channel members consider this value both as a financial asset and as a series of desired behaviors and
communications". Based on this definition a rand's value can be known as a value which is increasingly related
to brand's name (Zeinali, 2011).
Aaker (2007) defines the special value of brand as: "a set of assets and properties related to brand such
as name and symbol, which increase or reduce the value developed by a product or services for an agency or
organization.
Scholars adopt various approaches to study the special value of a brand. In fact, there is a main
separation between these three perspectives on evaluation of brand's special value. One of these perspectives
is the customer-based one which is solely focused on the relationship of customers with a certain brand
(Chegini, 2011).
The next perspective is the financial one which measures a brand's special value by isolating the surplus
financial flow developed by brand. This financial flow originates from tendency of customers to purchase a
certain brand more frequent than rival brands, even if they are cheaper (Kottler & Keller, 2008).
Several theoretical frameworks are proposed (including that of Berry, 2000; Simon & Sullivan, 1993;
Chernatony, 1998, etc) to understand customers' thinking about a certain brand and their reactions toward it.
One of the valid and reference studies in the field of brand value determinants was done by Simon and
Sullivan in 1993. In this research they examined the effect of three variables (advertisements, company's age
and brand age) on brand's special value and concluded that these variables had a positive effect on brand's
special value.
Furthermore, Kaparliovis and Ponopolous (2010) investigated the effect of marketing and advertisement
costs, research and development costs and brand age on brand's special value and found out that
advertisement costs and brand age had a positive relationship with special value, while the relationship
between research and development costs and brand's special value was reported to be negative.
Moreover, Berry (2000) evaluated strategies of 14 service companies and demonstrated that brand's
value is composed of two components: brand awareness and brand's meaning. Awareness aspect is measured
by reputation, image and identity and brand's meaning could be related, closely, to performance, image and
identity. In Berry's model the shown brand involves organized expectations of the organization from desired
image of its brand, which itself includes brand, motto, web site, facilities and covering employees unit.
In a research on examining determinants of brand's value (with a financial approach) in companies
accepted to enter the stock exchange Azizi and Namamian (2011) demonstrated that advertisement and
brand's age have a positive effect on brand's value. In other words, increasing the age of a company's brand
enhances that brand's value. Besides, advertisement can affect consumer's behavior by developing a positive
image and awareness in consumer's mind.
Abbasian (2007) did a research titled "examining the effect of consumers' perception from a brand on
their reaction (case study of cell phone consumers in Tehran)". Findings showed that there is a positive
relationship between consumers' recommendation guaranty and their personal identity on one hand, and
between paying higher costs and accepting generalization of the bran on other hand.
Ashkan Nejad (2007) examined the effect of consumer's knowledge about a brand and product on
evaluation of brand development. Results indicated that consumer's awareness of a brand directly affects the
value they put on the product.

Research Conceptual Model

Since the model proposed by Simon and Sullivan and Berry is sufficiently comprehensive and involves
all independent variables of this research, hence the model considered for this paper is a combination of that of
Simon and Sullivan and that of Berry. Main components of Simon and Sullivan's model of brand's dimension
are brand age and advertising. Moreover, main components of Berry's model to measure brand's dimension

1896
Intl. Res. J. Appl. Basic. Sci. Vol., 4 (7), 1894-1900, 2013

include brand awareness (brand's identity, reputation and image), brand's meaning and brand's concept. Thus,
the conceptual model proposed for the present research is as follows:

1- Brand's
reputation Consumer's
2- Brand's behavior
meaning
3- Brand's
identity
4- Brand's
image
5- Brand's age
6- Brand's
advertising

Conceptual model :Berry –symon& solivan (2005)

Research Hypotheses
Since the present paper aims to examine the effect of aspects of brand dimensions on LG home
appliances consumers' behavior in Rasht city, the following hypotheses are proposed:
The research has six main hypotheses:
1- There is a relationship between brand's reputation and home appliances consumer's selection.
2- There is a relationship between brand's image and home appliances consumer's selection.
3- There is a relationship between brand's identity and home appliances consumer's selection.
4- There is a relationship between brand's meaning and home appliances consumer's selection.
5- There is a relationship between brand's age and home appliances consumer's selection.
6- There is a relationship between brand's advertising and home appliances consumer's selection.

RESEARCH METHODOLOGY

The present research is an applied study (in terms of its goal) and uses descriptive – survey method.
Data were collected by field methods. Also, questionnaire was used to gather required data.
The population is composed of all LG home appliances consumers in Rasht city. Sample size was determined
by simple random sampling method. Since the population mass is infinite in this study, the following equation
was used to evaluate sample size.

96

If success probability (P) is considered to be 0.5, the numerator will maximize. For safety, P is
considered as the maximum value in this research. With error coefficient ( ) of 0.07, the sample size was
estimated to be 196.
The validity of questionnaire was confirmed by content validity and its reliability was evaluated by Chronch
Alpha. The questionnaire is of 5-itsm Likert type and contains 21 questions to measure the effect of brand
aspects on consumers' behavior. Six components of Brand's special value are considered here including
reputation, identity, image, meaning, age and advertising. Chronbach's alpha coefficient of question set for each
component is given in Table 1.

Table 1. Chronbach's Alpha for each variable

Variable Reputation Identity Image Meaning Age Advertising Consumer's
behavior
Chronbach 0.87 0.91 0.72 0.81 0.93 0.78 0.88
Alpha

Furthermore, the Chronbach Alpha of the whole set was estimated to be 0.91 which indicates its reliability.

1897
Intl. Res. J. Appl. Basic. Sci. Vol., 4 (7), 1894-1900, 2013

Data Analysis
Since it was expected to give back only some questionnaires, 225 were distributed of which 202
returned. Hence, 202 documented questionnaires were studied.
Pearson correlation test was used to investigate the relationship between independent and dependent variables
and to test research hypotheses using SPSS. Test results and correlation coefficient in error level of 0.05 and
confidence level of 0.95 are presented in following tables:
Table2.Pearson correlation test among brand's reputation and consumers' behavior
Variables Sample size Correlation Significance Result
coefficient
Brand's reputation Hypothesis
and consumers' 202 43.2% 0.000 confirmed
behavior

Table 2 shows that Brand's reputation and consumers' behavior are 43.2% correlated and this indicates
the direct relationship between these two variables. Therefore, H1 is confirmed.

Table3: Pearson correlation test among brand's image and consumers' behavior
Variables Sample size Correlation Significance Result
coefficient
Brand's image and Hypothesis
consumers' behavior 202 49.2% 0.000 confirmed

Brand's image and consumers' behavior are 49.2% correlated and this indicates the direct relationship
between these two variables. Therefore, H2 is confirmed.

Table4. Pearson correlation test among brand's identity and consumers' behavior
Variables Sample size Correlation Significance Result
coefficient
Brand's identity and Hypothesis
consumers' behavior 202 49.1% 0.000 confirmed

Brand's identity and consumers' behavior are 49.1% correlated and this indicates the direct relationship
between these two variables. Therefore, H3 is confirmed.

Table5. Pearson correlation test among brand's meaning and consumers' behavior
Variables Sample size Correlation Significance Result
coefficient
Brand's meaning Hypothesis
and consumers' 202 29.5% 0.000 confirmed
behavior

Brand's meaning and consumers' behavior are 29.5% correlated and this indicates the direct
relationship between these two variables. Therefore, H4 is confirmed.

Table6. Pearson correlation test among brand's age and consumers' behavior
Variables Sample size Correlation Significance Result
coefficient
Brand's age and Hypothesis
consumers' behavior 202 46.7% 0.000 confirmed

Brand's age and consumers' behavior are 46.7% correlated and this indicates the direct relationship
between these two variables. Therefore, H5 is confirmed.

Table7. Pearson correlation test among brand's advertising and consumers' behavior
Variables Sample size Correlation Significance Result
coefficient
Brand's advertising Hypothesis
and consumers' 202 17.9% 0.000 confirmed
behavior

Brand's advertising and consumers' behavior are 17.9% correlated and this indicates the direct
relationship between these two variables. Therefore, H6 is confirmed.

1898
Intl. Res. J. Appl. Basic. Sci. Vol., 4 (7), 1894-1900, 2013

Moreover, regression results are given in the following table:

Table 8. Results of multiple regression analysis

Model Correlation Determination Adjusted
coefficient coefficient determination Standard error
coefficient
1 0.432 0.187 0.183 1.37856
2 0.492 0.242 0.238 1.33076
3 0.491 0.241 0.235 1.33146
4 0.295 0.087 0.082 1.46079
5 0.467 0.218 0.214 1.35153
6 0.179 0.032 0.027 1.50398

• Based on Table 8, the determination coefficient between brand's reputation and consumers' behavior is
0.187 indicating that 18.7% of changes in consumers' behavior depend on brand's reputation.
• Determination coefficient between brand's meaning and consumers' behavior is 0.087. That is, the
independent variable anticipates dependent variable up to 8.7%.
• Determination coefficient of 24.2% between brand's image and consumers' behavior, also, confirms the
relationship between these two variables.
• Moreover, with determination coefficient of 24.1% the relationship between brand's identity and
consumers' behavior is justified.
• As such, the relationship of brand's age and advertising with consumers' behavior is also acceptable
with determination coefficients of 21.8% and 3.2%, respectively.

DISCUSSION AND CONCLUSION

Considering the claim on the relationship between brand's reputation and consumer's behavior in
hypothesis 1 and its confirmation by research findings, it is suggested to LG's marketing managers (and to
other similar and rival companies in area of home appliances) to have a variety of marketing tasks in order to
enhance the reputation of their brand. This marketing could be fulfilled by media such as television, radio, etc.
Since there is a significant relationship between brand's identity and consumer's behavior, LG's marketing
managers have to pay more attention than before to improve the quality of products in order to maintain their
position n the market and creating a new environment to be distinct from others.
Moreover, since research results show a significant relationship between brand's image in consumers'
minds and their behavior, in order to develop permanent competitive advantage and more successful
competitive position the company can benefit from effective brand management to select the best way to realize
brand potential and increase its value by long-term brand leadership through continuous investment in quality,
communications, customer relationships and varied marketing.
It suggested to LG's marketing and company managers to present products having a simple, fluent and
attractive meaning and concept in every certain country's language and culture. Besides, they have to warranty
the understanding of their brand's meaning and concept in other cultures.
Since there is a positive and significant relationship between brand's age and consumer's behavior,
companies have to consider this factor as an important one in their brand's success and try to show themselves
by sponsoring TV programs or advertising in stadiums or artistic places. Also, they must produce commercials
emphasizing the age of the brand.
Considering the valuable role of advertisements in costumers' repurchase and loyalty, company can
send special gifts on special days to those customers who by LG products from authorized agencies. Moreover,
using loyalty programs to remunerate and admire permanent customers (loyal to LG brand) is another strategy
company can adopt. In other words, company expands its advertising range by presenting particular
advantages and services to loyal customers.
Also, it is important to note that t is not possible in the area of business, brand positioning and consumer's
behavior to achieve supreme goals without productive and innovative employees.

REFERENCES
Aaker D.1991."Managing Brand Equity: Capitalizing On The Value Of A Brand Name". Free Press Newyork.
Amirshahi M, Parsa S. 2011. “Studying brand generalization acceptanceby Logit model.” Commercial research quarterly. No.61. pp167-
188.
Azizi Sh , Namamian A , Darvishi Z. 2011.” Examining determinants of brand's value with financial approach in companies accepted in
stock exchange.” Journal of Commercial Management Perspective. No.6, pp 32-90.
Fard Sabouri M. 2009.” Comparison of the power of local and foreign brands from home appliances customers' viewpoint in Guilan
province.” Commercial Management Monthly. No.8, period 3, pp 41-60. Management faculty, Tehran University.
Ganji Nia H, Akhavan Foumani S. 2011.” The role of brand's character in consumers' behavior and brand-making challenges in Asia”.
Islamic Azad University, Rasht.

1899
Intl. Res. J. Appl. Basic. Sci. Vol., 4 (7), 1894-1900, 2013

Hawkins D etal .1992 ."Consumer Behavior: Implications For Marketing Strategy".Home Wood Llions:Irwin.
Hawkins D, Best R , Kaney K . 2006 . translated by Bathahi Vadragi.”Consumer's behavior.” First edition. Sargol Press.
Helin E .2008. " Understanding Consumer Brand Knowledge In Developing Strong Brands".Bachelor's Thesis.Jyvaskyla University.
pp 1 – 37.
Jazni N, Azizi Sh, Halvaei A. 2010. “Customer's decision-making styles based on Sprolz and Kendal model”. Journal Commercial
Management Perspective. No.3. pp9-24.
Kelle K. 2009."Strategic Brand Management , In building , Measuring And Managing Brand Equity Upper Saddle River ". New
Jersy : Prentice Hall .Pearson Education .Inc , pp . 130 – 145.
Kottler P.1994. "Marketing Management; Analysis, Planning, Implementation And Control" .Prentice – Hall.
Leek Sh ,Christodoulides, G. 2011."A Framework Of Brand Value In b2b Markets:The Contributing Role Of Functional And
Emotional Components".Industrial Marketing Management .
Modabbernia Y, Gholipour Soleimani A . 2009.” Marketing management.” p.64.
Moon J , Minor C, Michele, S. translated by Abbas Saleh Ardestani, Mohhamd Reza Sa'adi.” Consumer's behavior.” Tehran. Ettehad
Press, Jahan No.
Mowen J .1995. "Consumer Behavior",4th ed,Englewood Cliffs,N.J:Prentice – Hall.
Oliver R.L.1999." What is Customer Loyalty".Journal Of Marketing. Vol .63. pp 33 – 44.
Pike S .2009."Destination Brand Positions Of a Competative Set Of Near-Home Destinations". Journal Of Tourism
Management.Vol.30. No. 6. Pp 857- 866.
Ranjbarian A, Dehghan H. 2007.” Investigating effective factors on machine carpet customers' approach toward various brands in Isfahan.”
MA thesis. Shahid Beheshti University
th
Roosta A, Venous D, Ebrahimi A . 2008.” Marketing management”. 12 edition. SAMT Press.
Samadi M, Hajipour B, Dehghan M . 2009.” Examining the effect of brand aspects on tendency to repurchase, case study: Refah chain
stores”. Journal of Management Thoughts. Year.3, no.2, pp149-165.
Samadi, M. 2008.” Consumer's behavior, purchase decision-making process”. Tehran, Aeiz Press.
Sanaye-ei M, Ketabi Z.” Investigating effective factors on TV preference using hierarchical process”. MA thesis. Isfahan University.
Seyedein S. 2011.” Evaluating determinants of brand's value, case study: Mashhad's Persian Carpet”. TMBA.
Sweeney J. 2008. "The Effect Of Brand Credibility On Customer Loyalty".Journal Of Retailing And Consumer Service.
Wood l.2000."Brands And Brand Eequity: Definition And Management" , Mcb University Press.P. 663.
Yoo B .2008.” Cross – National Invariance Of The Effect Of Personsl Collectivistic Orientation On Brand Loyalty And Equity ,Asia
Pacific”. Journal Of Marketing And Logistics. Vol .21. pp 41 – 57.
Zeinali E. 2011. “Examining the effect of service brand aspects on tendency to reuse”. Payam -e-Noor University of Tehran, MA thesis.
Chegini M .2010. "Consumer Loyalty and Value Key Dimensions Interaction In Organization". China – Usa Business Review. Vol.
9. pp 8 – 14.
Rezaei M. 2009. “Examining effective factors on brand loyalty in dairy market of Tehran”. Payam-e-Noor University of Tehran. Literature
and human sciences faculty.

1900